Tax and Trade

In 2006, America's major oil and natural gas companies incurred more than $90 billion in income tax [1]. In addition, these companies collected over $48 billion in excise taxes in 2006 on behalf of the IRS [2]. Additional taxes and fees imposed on the industry include gross production or severance taxes, import duties, and property, sales, and use taxes. U.S.-based petroleum companies must compete in the global oil and gas market to ensure a stable supply here at home. Taxes can affect our companies' ability to stay competitive in the world market.

API's tax team advocates for a sensible and predictable federal taxing regime. The position papers below are provided to educate decision-makers and their staff on various federal tax issues and their impact on the petroleum industry. Our advocacy also involves testimony and comments to Congress and federal regulatory bodies. In addition, we educate consumers about motor fuel taxes through our survey of state motor fuel excise tax rates.

[1] See Table B12, Composition of Income Taxes for FRS Companies, 2000 -2006 found in Performance Profiles of Major Energy Producers, Report #: DOE/EIA-0206(06), Energy Information Administration, December 2007.

[2] See Table B13, U.S. Taxes Other Than Income Taxes for FRS Companies, 2000 - 2006, found in Performance Profiles of Major Energy Producers, Report #: DOE/EIA-0206(06), Energy Information Administration, December 2007.